Many traders are wondering if this is the start of another bull run as XRP struggles to reach previous highs.
With market analyst EGRAG predicting an 888% increase in the cryptocurrency’s value, XRP fans are ecstatic. This optimism is not just wishful thinking, but is based on the trends observed in the one-month chart of XRP, which reflect the rapid success of the cryptocurrency in 2017.
XRP has nearly touched the rising red support line four times, according to EGRAG’s chart analysis. This pattern is similar to the price movements this coin experienced during the 2017 bull rally, when XRP went from being worth $0.003 to a solid $3.31 in January 2018. Repeating this pattern suggests that XRP may soon follow a similar path.
Overcoming Key Resistance Levels
But what is the catalyst for XRP to have such an explosion? EGRAG says the first major resistance is at the all-time high of $3.31. They believe a rebound there will set the stage for a rally.
Interestingly, EGRAG suggests that just 20% of 2017’s gains could pave the way for further gains, hitting the key Fibonacci extension level of $31. Reaching $31 would reflect current market sentiment and could even attract more investors.
Statistically, price milestones have influenced market psychology in past bull markets. Indeed, the rise from $0.003 to $3.31 was influenced not only by numbers, but because people saw XRP as revolutionizing the entire crypto space.
XRP Price Forecast
Recent estimates from CoinCodex make us feel optimistic. The cryptocurrency price forecasting site predicted XRP could rise 19.78% by the end of October 28, 2024, reaching a high of $0.71033.
This is because the Fear & Greed Index is 64, which represents investor greed, and the market sentiment is considered bullish. A greed rating sometimes triggers further price appreciation, making it an attractive opportunity for potential buyers. Month-to-date, XRP is up 16 out of 30 days, or 53%. With low volatility of 3.73%, the above stats paint a rosy picture for traders looking to profit on a breakout. The optimism is palpable, and traders are keeping a close eye on critical resistance levels that are likely to act as major obstacles going forward.
Will Short-term Holders Start to Profit Next?
XRP has recently been trading at $0.588, close to the mid-$0.585 level. This range formation has been going on since August 2023, and it has yet to show any signs of breaking higher.
The lack of volatility around XRP has caused traders to be cautious. In a worrying development for traders looking for relative strength in the token, bitcoin [BTC] has gained 14.3% over the past two weeks compared to XRP’s 3.25%.
According to TradingView, the long term range extended from $0.461 to $0.71. The midpoint of this range was $0.585. XRP appeared to form a narrower range of $0.52 to $0.625 over the past two months.
The token’s price action indicated sideways movement since July, with periods of high volatility like early August. The daily RSI stood at 54, and its September readings highlighted that the asset is lacking strong momentum.
During this quiet period, OBV rose slowly, which meant that buying volume remained steady, supporting the idea of a rally after the current consolidation.
At this point, though, a drop from the $0.6-$0.62 resistance zone seems more likely than a break above, especially given the low volume of the past few weeks.
These mixed signals are currently making holders hesitant.
By Leonardo Perez